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SUNDAYDaily Maersk The conveyor belt of global trade

• What if we could promise that cargo would be on time, every time?

• What if placing a shipping order was as easy as buying an airline ticket?

• What if the shipping industry was known for beating environmental expectations – not struggling to meet them?

Based on customer feedback, we highlighted three industry challenges

New Normal

3

The Customers are in Focus

“It’s about Time”

Time Savers

ReliabilityAs a customer I can:• Plan my destination services

already when the container is gated in – that gives me better utilization of my resources and I don’t have to hire temps or pay overtime in my distribution centre

• Stop worrying about where the container is right now and focus on how best to deal with the shipment, once it arrives – on time...

• Stop adding buffer to what the carrier is ”promising” and offer a better product to my internal customers

FrequencyAs a customer I can:• Even out the flow both at

origin and destination and bring down the overall transportation and storage time and cost

• Plan my business around what suits my production and delivery schedule, rather than the carriers’ schedule

• Get better deals with origin and destination services, as I can plan around bottlenecks

• Avoid too long delays, even if my production or quality inspections are prolonged by a day or two

ConsistencyAs a customer I can:• Reduce my security stock,

because Maersk Line has become part of my production line or my floating warehouse.

• Start focusing on removing waste and reducing the variance in other parts of my supply chain

• Stop looking up schedules and tracking cargo, as I am always getting the same service

Ease of BusinessAs a customer I can:• Focus more on my own

business and rely on Maersk to take care of the transportation of my cargo

• Switch to and take advantage of a single process for bookings, documentation and invoicing for all my shipments

• Rest assured of a guaranteed transportation time for my cargo and not have to constantly follow-up with my carrier contact(s)

In the interviews, four key elements are repeatedly mentioned by the customers as time savers and value creators…

We will make it easy for customers to calculate the potential value of Daily Maersk

We back our promise with a monetary compensation If delayed 1-3 days; USD 100 per container

If delayed 4 days; USD 300 per container

The value of daily cut-offs and the value of reliability

Up to 50 % inventory reduction

Up to USD 500saved per container

The heroes of today

The heroes of tomorrow

Pre-plan

Remove waste

Focus on generating business and production plans

Save fuel

Communicate better and sooner

We can’t solve problems by using the same kind of thinking we used when we created them…..

Albert Einstein

• Overbookings versus over allocation• Leads to downfalls and rollings• Leads to ad-hoc operation to fill vessels• Leads to un-reliability• Leads to re-planning• Leads to extra cost and frustration

How likely is it that the shipping industry could be revolutionised by an innovative surprise launch similar to the mobile phone and music player industry?

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16318

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Very Likely

Likely

Neither

Unlikely

Very Unlikely

Where will the next battle stand?

• Speed versus bunker consumption• Booking processes• Visibility…• Customs and other public processes• Online services• End to end planning…feeders and

inland • …….

12

The Customers are in Focus

“It’s about Time”